Legal Setback for Lido DAO
A California federal court ruled that Lido DAO, governing the liquid staking protocol, qualifies as a general partnership under state law. This decision exposes participants to liability, challenging the notion that DAOs can avoid responsibility through decentralization.Court Holds Members Accountable
The court found that Lido DAO participants actively involved in governance were liable for its actions. Investors like Paradigm and Andreessen Horowitz were implicated due to their roles in decision-making. The case stems from a class-action lawsuit alleging that LDO tokens were unregistered securities.Implications for DAO Governance
This ruling could reshape how decentralized organizations operate. By holding members liable, the court emphasized that decentralized structures are not immune to legal accountability. This decision may lead to increased scrutiny of DAOs and push for more robust regulatory compliance across the crypto ecosystem.
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